The Indian Contract Act, 1872 is the law governing contracts in India. It defines and amends certain parts of the law relating to contracts. The Act is based on the English Common Law. According to Section 2(h) of the Indian Contract Act, 1872, a contract is "an agreement enforceable by law". For a contract to be valid, it must contain the following essential elements: 1. Offer and Acceptance (Sections 2(a) and 2(b)) 2. Intention to create legal relations 3. Lawful consideration (Section 2(d)) 4. Capacity of parties (Sections 11-12) 5. Free consent (Section 13) 6. Lawful object (Section 23) 7. Certainty and possibility of performance 8. Legal formalities The Act also provides for various types of contracts: - Valid Contract - Void Contract - Voidable Contract - Illegal Contract - Unenforceable Contract Remedies for breach of contract include: - Damages - Specific Performance - Injunction - Rescission - Restitution The Act also covers special contracts like: - Indemnity (Section 124) - Guarantee (Section 126) - Bailment (Section 148) - Pledge (Section 172)